at risk limitation – R4-50

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  • #191750
    jujubetree
    Member

    R4-50 example on the book

    partner’s tax basis in partnership=33

    partner’s at risk amount=25

    allocable loss from partnership=35

    the 2K loss is carried forward and can only be used when additional basis is created

    8K loss limited by at-risk limitation until the partner generates additional at-risk amounts to utilize the loss

    my question is : what amount should the partner recognise in his gross income? ordinary loss 25 or 33?

    thanks:)

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  • #644208
    Tux
    Member

    I believe it's 25, since it's the lower of the two choices. The rule is that you have to pass the 3 limitations, so you'd have to pick the lowest limit.

    Which MCQ is this from?

    I'm studying REG with Becker too.

    FAR - 86 - 2/27/14
    AUD - 75 - 5/29/14
    BEC - 80 - 8/31/14
    REG - 89 - 2/27/15
    Praise Jesus! I'm done!!

    Study resources:
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    #644209
    jujubetree
    Member

    It's just example from Becker,R4-50

    live fast die young
    look good feel good

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